Multifamily FHA/HUD section 223(F) Loans
- 2.75% to 4.5% Fixed
- Multifamily cash-outs, refinance and Acquisitions
- Term & amortization: 35 years fully amortizing
- $1 to $100 Million+
- Nationwide
- No upfront fees. We are paid when your loan is funded at closing.
- Eligible properties: market rate properties of any class, cooperatives, affordable or subsidized housing. Construction or substantial rehab completed 3+ years before application to HUD; student housing allowable but cash flows cannot assume multiple rents from one unit and rents must be in line with market rate multifamily comparables.
- Subsidized: (at least 90% Section 8): 87% LTV, 1.11X DSCR, 90% acquisition to cost & 80% cash-out
- Affordable: (with minimum set-aside 15+ years): 90% LTV, 1.15X DSCR, 87% acquisition to cost & 80% cash-out
- Market Rate: 85% LTV, 1.18X DSCR, 85% acquisition to cost & 80% cash-out
- Repair and rehab limitations: up to $15,000 times local cost factor (190% to 270%); repairs not 50%+ of two building systems; electrical, plumbing, mechanical, building envelope and structural
- Commercial space limited to 25% of net rentable area & 20% of gross income
- 0.5% rate lock deposit refunded at closing
- Non-recourse
- Low fees and points
- Prepayment and assumption negotiable
- 700+ Credit
- Strong borrower/sponsor liquidity, net worth, financials and experience
- Single asset, special purpose LLC, for profit or non-profit
- Escrows: taxes, insurance and mortgaage insurance premiums escrowed monthly; capital needs reserve maintained with monthly deposits to HUD guidelines (minimum $250/year)
- Mortgage insurance premium: due to HUD at closing and 0.6% annually thereafter; 0.25% to 0.35% for affordable and subsidized properties; 0.25% for Energy Star Certified properties.
- HUD application fee: 0.30% of estimated loan amount due with application
- Third party reports: appraisal, environmental & capital needs assessment
- Timeline: typical application submitted 45 to 60 days of engagement; 60-90 days to HUD commitment and 30-45 days to closing
- Please click blue Multifamily FHA/HUD Link for FREE PRE APPROVAL LOI within 24 business hours. With a few clicks of your mouse it TAKES LESS THAN 3 MINUTES TO GET STARTED NOW. No upfront fees, credit cards, Social Security Numbers or credit checks required.
